Construction Warranty, Continued

If the builder will provide a ten-year insurance-backed protection plan, then both of the following will be required

·   the veteran purchaser’s written acknowledgment that, “I am aware that VA did not inspect this property during construction and that it does not qualify for VA assistance with construction complaints.”  Reference: See Section 13.06, “Not Inspected Acknowledgment”.

·   evidence of enrollment of the property in a ten-year insured plan acceptable to HUD.  Reference: See Section 13.06, “Ten Year Insured Protection Plan”.

Exception:  An exception may be made for a veteran who wishes to purchase a new home from a builder who is not more than occasionally involved with VA financing and will not provide either a one-year VA builder’s warranty or a ten-year insured protection plan.  In that situation, all of the following will be required:

·   the veteran purchaser’s written acknowledgment that, “I am aware that this property does not qualify for VA assistance with construction complaints, since it was not inspected by VA during construction.  I am also aware that this new property will not be covered by either a one-year VA builder’s warranty or a ten-year insured protection plan, as is normally required in this situation.”  

·   the builder’s written certification that, “This company is not more than occasionally involved with VA financing and is aware that this property is being accepted without any VA-required warranty on an exception basis only upon the request of the veteran purchaser.  The dwelling was constructed according to standard building practices and is in conformity with all applicable building codes and complies with the energy conservation standards of the 1992 Council of American Building Officials Model Energy Code,” and,

·   the lender obtains a copy of documentation issued by the local building authority to verify that construction was acceptably completed, such a final inspection or occupancy permit.  Where local authorities do not perform building inspections, the builder must certify in writing that “The dwelling was not inspected during construction by any State, county or local jurisdiction.